Österreichische Volksbanken-Aktiengesellschaft ... - Volksbank AG

(2) Senior Notes. Notes that are specified in the Final Terms (item 15) to be senior Notes
constitute direct, unconditional, unsecured and unsubordinated obligations of the Issuer
and rank pari passu among themselves.
(3) Subordinated Notes. Notes that are specified in the Final Terms (item 15) as subordinated
(ie "Subordinated Capital Notes", "Short Term Subordinated Capital Notes", "Supplementary
Capital Notes" or "Subordinated Supplementary Capital Notes") constitute
unsecured and subordinated (pursuant to sec 45 para 4 of the Austrian Banking Act) obligations
of the Issuer ranking pari passu among themselves and pari passu with all other
subordinated obligations of the Issuer other than subordinated obligations which rank senior
to the Notes or are preferred by law. In the event of liquidation or bankruptcy of the
Issuer, the obligations under the Notes may be satisfied only after the unsubordinated
claims of other creditors have been satisfied so that in any such event no amounts shall be
payable in respect of such obligations until the claims of all unsubordinated creditors of
the Issuer shall have been satisfied in full. No Noteholder may set off his claims arising
under the Notes against any claims of the Issuer. No contractual security may be provided,
and will not at any time in the future be provided by the Issuer or any other person
to secure rights of the Noteholders under the Notes. No subsequent agreement may limit
the subordination pursuant to the provisions set out in this § 2 or amend the term in respect
of the Notes to any earlier date or shorten any applicable notice period.
(4) Covered Notes. For Notes that are covered Notes according to the Final Terms (item 15),
the following shall apply:
(a) Covered Notes will constitute direct, unconditional and unsubordinated obligations
of the Issuer and rank pari passu among themselves.
(b) Covered Notes are secured by separated cover assets which are designated to cover
the Notes pursuant to the Austrian Law on Covered Bank Bonds (Gesetz über
fundierte Schuldverschreibungen) and which inter alia comprise, as determined
from time to time by applicable law, claims against or guaranteed by an Austrian
public authority, other member states of the European Economic Area or Switzerland
and their provincial governments or municipalities for which the competent
authorities pursuant to Art 43 sec 1 lit b No 5 of the EC Directive 2000/12/EC have
determined a risk weighting of not more than 20 per cent, securities issued or guaranteed
by any one of the previously mentioned authorities, gilt-edged securities and
gilt-edged receivables (pursuant to sec 230b of the Austrian General Civil Code),
claims or securities benefiting from a pledge registered in a public register, or
hedging transactions (derivatives) which are entered into in order to reduce future
interest rate risks, currency risks or debtor risks.
(c) Such assets shall at any time cover at least the redemption amount and the interest
of the issued covered Notes as well as the prospective administrative costs in case
of a bankruptcy of the Issuer.
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